US joins Japan yen rescue, flags Fed repo tool to shield Treasurys
Why it matters: Tokyo plans to use the Fed’s FIMA repo facility so it can raise dollars for intervention without selling US debt.
The United States joined Japan’s currency intervention for the first time since 1998, helping push the yen off a nearly 40-year low and signaling a broader effort to protect the US Treasury market. Treasury Secretary Scott Bessent said the coordinated action countered disorderly moves after the yen weakened to nearly 164 per dollar, its softest level since 1986, before rebounding to just under 157. Japan’s Finance Ministry said it plans to use the Federal Reserve’s FIMA repo facility in future operations, allowing it to obtain dollar liquidity without dumping Treasurys. Analysts said Washington’s move reflected concern that unilateral Japanese intervention or a deeper yen slide could disrupt US funding markets and global bond yields.